We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lincoln National (LNC) Beats on Q4 Earnings, Revenues Miss
Read MoreHide Full Article
Lincoln National Corporation’s (LNC - Free Report) fourth-quarter 2018 earnings of $2.15 per share beat the Zacks Consensus Estimate by 0.94%. Moreover, the bottom line improved about 8.6% year over year, mainly led by increase in revenues and a very low rise in expense.
Operating revenues of $4.5 billion increased 20% year over year but missed the Zacks Consensus Estimate by 10.6%.
Strong Segment Results
Operating income in the Annuities segment was down 2.6% year over year to $258 million. This was mainly due to lower account value growth, partly offset by a lower reported tax rate.
Total annuity deposits soared 35% from the year-ago quarter to $3.8 billion, driven by growth in variable and fixed annuities owing to product and distribution expansion.
Lincoln National Corporation Price, Consensus and EPS Surprise
Operating income in Retirement Plan Services increased 10% year over year to $45 million, led by lower expenses and a slashed tax rate. Total deposits declined 11% year over year to $2.2 billion.
Operating income in Life Insurance segment was up 15% year over year to $175 million as a result of stronger variable investment income and a lower reported tax rate.
Operating income in Group Protection increased 150% year over year to $50 million. This increase was driven by the buyout of the Liberty Mutual Group benefits business and a lower tax rate.
The Other operations segment incurred a loss of $53 million, wider than $38 million suffered in the prior-year quarter, quarter. The decrease in earnings is primarily attributable to lower tax benefits on pre-tax losses as a result of tax reform.
Financial Update
As of Dec 31, 2018, Lincoln National’s book value per share, excluding accumulated other comprehensive income, climbed 4.8% year over year to $67.73.
Operating return on equity (ROE) excluding accumulated other comprehensive income and goodwill, improved 70 bps from the year-ago quarter’s number to 13.5%.
The company ended the quarter with long-term debt of $5.9 billion, up 23.4% year over year.
Total shareholders’ equity of $14.3 billion declined 17.2% year over year.
Among other players from the insurance industry that have reported fourth-quarter earnings so far, the bottom line of MGIC Investment Corp. (MTG - Free Report) , Chubb Ltd. (CB - Free Report) and The Travelers Companies, Inc. (TRV - Free Report) beat the respective Zacks Consensus Estimate.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
Image: Bigstock
Lincoln National (LNC) Beats on Q4 Earnings, Revenues Miss
Lincoln National Corporation’s (LNC - Free Report) fourth-quarter 2018 earnings of $2.15 per share beat the Zacks Consensus Estimate by 0.94%. Moreover, the bottom line improved about 8.6% year over year, mainly led by increase in revenues and a very low rise in expense.
Operating revenues of $4.5 billion increased 20% year over year but missed the Zacks Consensus Estimate by 10.6%.
Strong Segment Results
Operating income in the Annuities segment was down 2.6% year over year to $258 million. This was mainly due to lower account value growth, partly offset by a lower reported tax rate.
Total annuity deposits soared 35% from the year-ago quarter to $3.8 billion, driven by growth in variable and fixed annuities owing to product and distribution expansion.
Lincoln National Corporation Price, Consensus and EPS Surprise
Lincoln National Corporation Price, Consensus and EPS Surprise | Lincoln National Corporation Quote
Operating income in Retirement Plan Services increased 10% year over year to $45 million, led by lower expenses and a slashed tax rate. Total deposits declined 11% year over year to $2.2 billion.
Operating income in Life Insurance segment was up 15% year over year to $175 million as a result of stronger variable investment income and a lower reported tax rate.
Operating income in Group Protection increased 150% year over year to $50 million. This increase was driven by the buyout of the Liberty Mutual Group benefits business and a lower tax rate.
The Other operations segment incurred a loss of $53 million, wider than $38 million suffered in the prior-year quarter, quarter. The decrease in earnings is primarily attributable to lower tax benefits on pre-tax losses as a result of tax reform.
Financial Update
As of Dec 31, 2018, Lincoln National’s book value per share, excluding accumulated other comprehensive income, climbed 4.8% year over year to $67.73.
Operating return on equity (ROE) excluding accumulated other comprehensive income and goodwill, improved 70 bps from the year-ago quarter’s number to 13.5%.
The company ended the quarter with long-term debt of $5.9 billion, up 23.4% year over year.
Total shareholders’ equity of $14.3 billion declined 17.2% year over year.
Zacks Rank and Peer Releases
Lincoln National has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among other players from the insurance industry that have reported fourth-quarter earnings so far, the bottom line of MGIC Investment Corp. (MTG - Free Report) , Chubb Ltd. (CB - Free Report) and The Travelers Companies, Inc. (TRV - Free Report) beat the respective Zacks Consensus Estimate.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>